Web3 is not just an evolution; It is society’s last chance of correcting the wrongs of digital centralization, empowering individuals to build true social wealth and reclaim control over the internet’s future.

To understand Web3 and how we got here, it is important to highlight that the internet as an infrastructure has already undergone many changes in its relatively short history.

The history of the internet can be categorized into 3 main eras:

1. The first era of the internet (Web1) widely regarded as the READ ONLY era, circa 1990-2005. This period of the internet’s development is characterized by early protocols that democratized information and is likened to a vast digital library that everybody had access to. Anybody could input a few words into a web browser and read about almost any topic.

2. The Second era of the internet (web2), also known as the READ-WRITE era, began roughly in 2006 with the rise of corporate networks. This era democratized publishing, as anyone could now write and publish to mass audiences through social networks and other network services.

3. The third stage of the internet’s development represents a synthesis of the two previous types. Widely referred to as the READ-WRITE-OWN era, Web3 aims to democratize ownership. Anyone can now become a network stakeholder, gaining power and economic upside previously enjoyed by a small number of corporations and corporate affiliates.

Web3 promises to challenge Big tech consolidation and return the internet to its dynamic roots. With web3, people can read and write on the internet, but they can also now OWN.

The Rise of Corporate Networks (Attract/Extract)

Web2's evolution saw the rise of what some critics call the "attract and extract" model. Tech platforms initially attracted users with free services, building massive networks through social connections and content creation. Once these platforms achieved critical mass, they leveraged user data and attention to build powerful advertising businesses.

This model led to several consequences: algorithmic feeds optimized for engagement over quality, surveillance capitalism through extensive data collection, and walled gardens that limit interoperability. While these platforms created tremendous value, they also concentrated economic rewards among shareholders rather than distributed them among the users who created the network effects.

The centralization of Web2 also introduced single points of failure, censorship risks, and privacy concerns as user data became the primary product sold to advertisers.

The Role of Decentralization in Web3

Web3 aims to address the shortcomings of Web2 through decentralization—distributing control rather than concentrating it. This approach has several potential benefits:

• User ownership: Digital assets and data can be owned directly by users rather than platforms

• Censorship resistance: No single entity can unilaterally shut down applications or content

• Trust minimization: Reduced need to trust third parties through cryptographic verification

• Value distribution: Economic rewards can flow directly to network participants

Through mechanisms like decentralized autonomous organizations (DAOs), Web3 explores new governance models that allow stakeholders to participate directly in decision-making. Smart contracts enable trustless transactions and agreements without intermediaries. Importantly, decentralization exists on a spectrum—with different Web3 projects implementing various degrees of decentralization according to their specific needs and use cases.

While Web3 faces significant challenges including scalability, usability, and regulatory uncertainty, it represents an important exploration of how networks might evolve beyond the current paradigm toward greater user sovereignty and distributed value creation.